Industry operators yearn for redesign of Micro insurance & Pension plans 


L- Director General/Chief Executive Officer, Lagos Chamber of Commerce and Industry (LCCI), Dr. Chinyere Almona, President of the Chartered Insurance Institute of Nigeria, CIIN, Mr. Edwin Igbiti presenting plague to Mr Cyril Ajagu, Chairman of Africa Allianc at the event


By Favour Nnabugwu



Insurance and Pension practitioner have called for the redesign of the micro insurance and pension plans to accommodate both the Nano enterprise and Small and Medium Enterprises (SMEs).

Micro Pension Plan refers to an arrangement under the Contributory Pension Scheme (CPS) that allows the self-employed and persons working in organisations with less than three (3) employees to make financial contributions towards the provision of pension at their retirement or incapacitation.

Industry operators who spoke at the 7th edition of NAIPCO conference in Lagos, said that operators must recognize the segmentation of the informal sector and begin to offer products to suit their needs . This they said must be done in order to improve the adoption level of the plan.

This is even as the experts fear that this will further trigger old age poverty as huge percentage of SMEs are yet to onboard into the plan.

Speaking on the theme, ‘On-Boarding Small and Medium Scale Enterprises into Micro Insurance and Pension Space in Nigeria, Managing Director, Heirs Life Insurance Limited, Mr. Niyi Onifade, noted that MSMEs and SMEs have several risks that insurance operators must look into to provide a cover in order  to  limit old age risk.

According to him, insurers must begin to understand that SMEs are not just the artisans, vulcanisers on the road, but has expanded  to the technology guys, photographs including the well educated who control different kinds of businesses. 

He urged operators to improve on the awareness level to further deepen adoption of the plan.

“We must also have appropriate products services that meet the needs of the SMEs  because the needs are different. What you offer to the mechanic cannot be the same as what you offer to the professional photographer.The  requirements are different and we have to come up with specific products for each and every class.”

On her part, Chief Executive officer, Enterprise Risk , Mrs Funmi Omo said: “For us as insurance practitioners, there are a lot we should do. We have to start by engaging people at the level of which they are.

“Since we have a lot of educated and non educated people in the informal sector then we have to be diverse in our engagement.”

According to her, this can be achieved through adoption of technology adding, “using digital means is crucial because it ensures efficiency.”

On his part, Chief Executive Officer, Pension Fund Operators Association of Nigeria, (PenOp) Mr. Oguche Agudah lamented the low adoption of the plan while describing it as a national emergency scheme which will be used to save the future of the country.

According to him, operators must begin to look at how to make the scheme suitable, available and how to  incentivize them.

Nigerian insurance industry performs above Egypt, Tanzania & Malaysia in 2021

* As Naicom reel out five year industry perfomance


By Favour Nnabugwu



The National Insurance Commission, Naicom reeled out five year performance of the insurance which reveals that the Nigeria is not doing badly compare to other emerging markets in Africa

Naicom at the one day seminar for Insurance Editors theme: “The Future of the Nigerian Insurance Sector in a Shifting Landscape’ revealed that the nation’s insurance sector’s remarkable experience is even better situated when pictured relative to other jurisdictions in a similar emerging insurance markets

The sector’s five year performance, from 2017 – 2022 showed the industry did well amidst challenges.

In 2021,  the annual rate of premium growth in Nigeria stood at 19.7 percent, it was 18.5 percent for Egypt, 12 percent in Tanzania and 7.6 percent in the emerging Insurance market of Malaysia

Even in 2020, when compared, he said the Nigerian insurance industry recorded a retention ratio of about 71.6 percent higher than the advanced climes of Australia (69.4 percent) and Turkey (70.9 percent) and indeed the developing market of Egypt (58.1 percent) among others

In a paper present tagged the Facts Behind The Figures of the performance of the Nigerian Insurance Industry from 2017 through to 2022 in the recent past especially, the last five-years by Professor Umaru Baba, Assistant Director, Statistics & Research dept of the Commission, said the market as measured by the industry gross premium income (GPI) has maintained a steady growth throughout the period of 2017 to the current

Umaru said the increasing growth of 65.5 percent for the period when it grew from about N372.4b in 2017 to N616.6b in 2021, Year on Year during the period, the rate of growth was put at 14.2 percent for 2017, 14.5 percent in 2018 and, 19.2 percent 1.2 percent and 19.7 percent for 2019. 2020 and 2021 respectively

Umaru identified the major drivers during the period of 2017 – 2021 were the special risk insurance of Marine & Aviation at about one hundred and seventy (169.6 percent) per cent, Miscellaneous Insurance at 98.4 percent and Life Insurances at 71.3 percent

In 2022, he stated that the GPI stood at N223.8bn in the first quarter, which was 6% growth on YoY and, N369.2bn in the second quarter, indicating a 65 percent QoQ growth and at about 20 percent YoY

In 2022, however, he revealed that Fire Insurance stood at 32.5 percent and Life business stood at 24.5 percent recorded with highest rates at the end of first half of the year (H1) period, YoY.

“Interestingly the market recorded expansion in 2020 during the pandemic when the real GDP actually contracted (-1.9 percent) as was the case with most economies around the world

“Apparently outpacing the real economic growth which grew at just about 3.5 percent during same period

Retention Capacity within five years

“In tandem with the GPI growth, it recorded a positive trajectory in business retention from N265.5bn to N441.2bn (66.2 percent) over the period of 2017 to 2021, as expressed by the infographic (i)

The retention growth was highest for the Marine & Aviation, growing at 169.7 percent over the period while General Accident Insurance retention lagged at about 24.6 percent over the same period. This signifies growing retention capacity by Insurers as the aggregate five-year retention ratio of the industry stood at 72.1 percent as the portfolios of Motor (93.1 percent) and Life business (91.8 percent) led the market, he added.

The market has proven resilience not only with regards premium generation but the capacity to retain businesses which signifies sound financial stability and carriage capacity

Claims Settlement

Umaru said the claims is a primary factor for the quest of Insurance business and a cardinal element in its business model. Normally, Policyholders go for these services with the intent of filing for claims if/when the risk crystallises

“The Insurance market has continued to grow in gross claims reported reflective of the increasing policyholder enlightenment, market confidence from both demand and supply sides, and indeed effects of regulatory measures meant to ensure for claims settlement.

Industry Claims from 2017-2022

Baba posited that the gross claims reported a fluctuation over the period to peak at a growth proportion of 36.2 percent over the years representing N336.8bn in 2021 from N186.4bn in 2017.

“The percentage net claims paid has, owing to Improved market discipline and the approach of customer focused regulation, remained very high around the border of 70 percent, he added

He cited that In the pandemic year of 2020, despite macroeconomic challenges, about 70 percent of all reported claims were settled by Insurers within the specified period, the industry also remained profitable with loss ratios within the average range numbers, with highest in 2018 at 59.2 percent,  while lower net claims ratios, ceteris paribus, are good indicator of the desirable situation for profitability good returns on investment in Insurance business

The industry recorded a consistent expansion over the period despite market cyclicals recorded in the capital market especially, during the global COVID-19 pandemic.

“Sustained Assets growth of the industry even during economic recessions, highest in 2020 (34.6 percent) indicates the immense investment flow and, due to recapitalisation measures taken during that period

For these the industry’s total Assets, almost doubled over the five-year period of 2017 to 2021, this depicting a positive interest of investors in the market at a time associated with macroeconomic volatilities.

“In 2022 as illustrated in figure (j), it recorded an expansion to about N2.3 trillion at the end of first half (H1) which is growing at 12.0 percent Year on Year

Professor Umaru stated that based the ongoing performance, the insurance sector should be the future redeemer of the Nigerian economy given its growth rate, pattern, resilience and yet untapped potentials

Umaru noted that data has shown that, the industry sustained a higher growth rate than most other sectors of the economy and, always higher than the real GDP growth.

said for the need to sustain and improve on the current trend, the market deepening drive which is already yielding results, must be unrelenting in the sector

“Sustaining the current rapid rate of Insurance market growth and ensuring for economic growth, safety, stability, inclusion and development in Nigeria”

Faces @ 25th NIA Chairman, Segun Omosehin’s investiture in Lagos

Investiture of the 25th Chairman of the Nigerian Insurers Association, NIA, Mr. Olusegun Ayo Omosehin at Oriental Hotel, Lagos


L- Tope Smart, past Chairman, Nigerian Insurers Association (NIA); Ganiyu Musa, immediate past Chairman, NIA; Wole Oshin, past Chairman, NIA; Olusegun Omosehin, new Chairman, NIA; Godwin Wiggle, past Chairman; Eddie Efekoha, past Chairman, and Modupe Omosehin, wife of the NIA Chairman, during the investiture of Mr. Omosehin as the 25th Chairman of the association, in Lagos on Thursday.

L- Edwin Igbiti, CIIN President; Olorundare Sunday Thomas, Commissioner for Insurance/CEO, NAICOM; Darlington Nwokocha, Chairman, House Committee on Insurance and Actuarial Matters; Lucky Orimisan Aiyedatiwa, Deputy Governor, Ondo State; Olusegun Omosehin, Chairman, Nigerian Insurers Association (NIA), his wife, Modupe; Prof. Pat Utomi, Chairman of occasion, and others, during the investiture of Mr. Omosehin as the 25th Chairman of the association, in Lagos on Thursday.

R- Commissioner for Insurance, Mr Olorundare Sunday Thomas, Mr Pat Utomi and another guest at the investiture